Today, as Apple continues to focus on new services, the way the Cupertino company treats third-party developers of apps for iOS is under scrutiny. Furthermore, legal actions have already been taken against Apple by developers.
Currently, the lawsuit filed by Epic, the developer of the gameFortnite, at Apple, is in progress. As a reminder, believing that the commission charged by Apple (30%) is excessive, Epic had installed its own payment system on the video game, in order not to pay this commission. The Cupertino company immediately removed Fortnite from the App Store, and Epic decided to sue Apple.
While awaiting the verdict, this historic trial, which could shake up Apple's model, also allows us to discover revelations. For example, this week we learned that in 2011, Apple executives had already discussed a reduction in the 30% commission that the App Store charges on transactions between app developers and their users.
Like the Bloomberg report, documents used by Epic as evidence in this case show that in 2011, Phil Shiller (former marketing manager and current boss of the App Store) allegedly spoke with Eddy Cue (head of Apple services ) on the possibility of reducing the App Store commission, in an email exchange.
In his email, Shiller explained that Apple could not keep this 30% commission indefinitely. The current head of the App Store also suggested that if Apple were to change its commission, it could do so from a position of strength, moving to a 20% to 25% commission.
Phil Shiller had also proposed that Apple adjust its commission when the App Store reaches a billion dollars in annual profit, that the firm ensure that its profits do not fall despite this reduction in commission.
Apple still applies its 30% commission, but adjustments have been made
Today, Apple still charges its 30% commission. However, the Cupertino company has already made some adjustments in favor of app developers.
For example, on subscription services, the 30% commission only applies for the first year, for a user. In the second year, the commission is reduced to 15%. Recently, in order to support SMEs, Apple alsoreducedits commission for developers who generate less than $1 million per year.
Note that Google Play, the official Android app store, adopts a structure very similar to that of Apple. However, on Android, users can install apps that are not on the Play Store, or even install an alternative app store.
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By : Keleops AG